Author Question: Hubert's Copy Services is in perfect competition. Hubert currently charges 10 cents per page, which ... (Read 88 times)

Tazate · **on:** Jun 29, 2018

Hubert's Copy Services is in perfect competition. Hubert currently charges 10 cents per page, which is the going market price. He thinks that he can increase his profit by raising the price. Is it possible? Why or why not?

What will be an ideal response?

Question 2

The U.S. government provides monthly payments to retired workers under which program?

A) the Old Age, Survivors, Disability and Health Insurance (OASDHI)
B) the Temporary Assistance for Needy Households (TANF)
C) the Supplementary Security Income (SSI)
D) a series of income tax rebates

Shshxj · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

If Hubert raises his price, his profit will not increase. As a perfectly competitive firm, Hubert's is a price taker. It produces a tiny proportion of the copy services in the area, and buyers are well informed about the prices charged by other firms. So, if the market price is 10 cents per page and Hubert asks, say, 12 cents per page, his customers will go to the next copy service and Hubert will lose all his sales.

Answer to Question 2

A